General. The FDIC may require, at any time, an independent audit of the financial statements of, or the application of procedures agreed upon by the FDIC to a State savings association, by qualified independent public accountants when needed for any safety and soundness reason identified by the FDIC.

Audits required for safety and soundness purposes. The FDIC requires an independent audit for safety and soundness purposes:

If a State savings association has received a composite rating of 3, 4 or 5, as defined at § 390.101(c).

[Reserved]

Procedures. (1) When the FDIC requires an independent audit because such an audit is needed for safety and soundness purposes, the FDIC shall determine whether the audit was conducted and filed in a manner satisfactory to the FDIC.

The FDIC may waive the independent audit requirement described at paragraph (b)(1) of this section, if the FDIC determines that an audit would not provide further information on safety and soundness issues relevant to the examination rating.

When the FDIC requires the application of procedures agreed upon by the FDIC for safety and soundness purposes, the FDIC shall identify the procedures to be performed. The FDIC shall also determine whether the agreed upon procedures were conducted and filed in a manner satisfactory to the FDIC.

Qualifications for independent public accountants. The audit shall be conducted by an independent public accountant who:

Is registered or licensed to practice as a public accountant, and is in good standing, under the laws of the state or other political subdivision of the United States in which the State savings association's or holding company's principal office is located;

Agrees in the engagement letter to provide the FDIC with access to and copies of any work papers, policies, and procedures relating to the services performed;

Is in compliance with the American Institute of Certified Public Accountants' (AICPA) Code of Professional Conduct; and

Meets the independence requirements and interpretations of the Securities and Exchange Commission and its staff; and

Has received, or is enrolled in, a peer review program that meets guidelines acceptable to the FDIC.

Voluntary audits. When a State savings association obtains an independent audit voluntarily, it must be performed by an independent public accountant who satisfies the requirements of paragraphs (d)(1), (2), and (3)(i) of this section.